A firm sells three levels of a popular statistical package: a basic package for undergraduate students, an intermediate package aimed at graduate students and faculty members, and an advanced package for universities. This strategy illustrates
A) price lining.
B) multiple-unit pricing
C) leader pricing.
D) skimming pricing.

Question

Quizplus · Accepted Answer

Price lining is a pricing strategy where a company sells products or services at different price points, often based on features or quality levels. In this case, the firm is offering three levels of a statistical package at presumably different prices, tailored to different segments (undergraduate students, graduate students and faculty, and universities), which is a classic example of price lining.

A Firm Sells Three Levels of a Popular Statistical Package